Data breach takes toll on Target

MINNEAPOLIS – Target Corp.’s fourth quarter results took a beating from the data breach that hit the company during the holiday shopping season.

Total revenues in the quarter fell 5.3%, and comparable-store sales fell 2.5%. Net income fell 46% to $520 million.

Target says it does not yet have an estimate of the full cost of the data breach, but says the costs may have a material adverse effect on the company’s first quarter and full-year results in fiscal 2014, and in the future.

On the plus side, spending in Target stores is bouncing back.

"While we can’t yet assess the full impact of this crime against Target and our guests, we’re pleased that sales have started to recover from the trends we observed following breach-related announcements in December and January," Target chairman, president and chief executive officer Gregg Steinhafel told analysts during the company’s fourth quarter conference call.